Transportation to and from one’s place of employment is an important cost that most workers consider when choosing where to work. This may be particularly true for workers who seek employment in charitable or non-profit work. Section 132(f) of the Internal Revenue Code (the “Code”) incentivizes employers to provide employees with parking and transportation to attract potential employees to their business and ease the burden of commuting. This tax provision serves various policy rationales by allowing employees to exclude from their income transportation benefits received from their employer up to a monthly maximum. Allowing employees to exclude some of these costs eases the burden of commuting, especially in areas where parking is expensive.
Connor M. Sosnoff,
Tax Cuts and Jobs Act Changes to Qualified Transportation Fringe Benefits and the Resulting Impact on Tax-Exempt Organizations,
84 Mo. L. Rev.
Available at: https://scholarship.law.missouri.edu/mlr/vol84/iss4/12